The board gave prices to EPSIL of 650 (final) million euros, closing the last trading session of the week on positive ground.
A session where the news of the agreement to buy its minority shares by the American fund General Atlantic was the star.
The fund valued the company at its historical highs, essentially asking to take a good share of the company, through a new corporate structure, Ginger Digital, in which shareholders will be (apart from the fund), the existing major shareholders of Epsilon ( Michos and EGE).
Obviously, it will be necessary (as announced) to withdraw EPSIL from the board in due time, while beyond that we do not know (nor do we care, stock market wise) if other structures will arise in the share structure.
The news has a double meaning. On the one hand, the vote of confidence in both the stock and the sector is clear. We repeat that the fund valued EPSIL at historically high levels in relation to the explosive performance on the board so far (at €12), aiming to integrate it into a wide range of “profitable” companies. The fund manages about $85 million, mainly in technology, life sciences and financials.
On the other hand, we believe that it will also strengthen the position of the remaining listed companies on the Greek board, firstly because the prospects have been confirmed as excellent, and secondly because the size of the remaining listed companies is overall smaller than the size of those who said goodbye to us (see also ENTER).
Roughly, at a valuation of 650 million, 200 are liquidated by investors, and even assuming the reinvestment (part or all) of the amount in the IT industry, we understand the effect on the rest of the capitalization.
We also saw the immediate reaction to QUES (although not purely technological), ILYDA, REALCONS, PERF, QUAL.
Jokingly, even the forgotten DOTSOFT moved to limit up. With 10 pieces, of course, but that’s another discussion.
At the level of the General Index, now, we fortunately closed the 22nd bullish week in the last 29, and as everything shows, the 5th bullish month in the last 6, with March writing marginal losses of 0.17%.
We are also significantly outperforming all major stock indices through 2024 (+12.5% vs. indicative +8% of the DAX40, +7% of the S&P500, etc.), although most importantly remains the unparalleled resilience shown by several listed on the bearish legs of this multi-month uptrend.
Finally, we remind you that the next two weeks will be “lame”: the Athens Stock Exchange will remain closed on Wednesday (1/5), Friday (3/5), Easter Monday (6/5) and on Easter Tuesday (7/5, from the end of May Day). The other markets, especially New York, will not be closed on any of these holidays, and logically there will be many who will book seats so as not to lose sleep.
